Today is Friday, September 24, 2021.
Nike’s “Playbook” Under Fire After Poor Results
Shares of Nike (NYSE: NKE) dropped 3.83% during after-hours trading on Thursday after the global footwear and accessories giant posted disappointing quarterly results.
Numbers: While the earning’s per share of $1.16 was better than the expected $1.11 projection, the revenue of $12.25 billion fell short of the expected $12.46 billion.
The Good: Nike posted stronger numbers in China and a good increase in digital sales.
The Bad: Production shutdowns in Vietnam due to the pandemic caused supply chain issues and delayed shipments. The company also lowered its future guidance because it could take some time before production gets back to speed.
Quote: President and CEO John Donahoe said Thursday, “We have the right playbook to navigate macroeconomic dynamics, as we create value through our relentless drive to fuel the future of sport.”
Final Thoughts: Nike’s stock is up 13.90% this year, but Thursday’s results could make investors question the short-term dependability of the company.
Notable Earnings Today: InMed (Nasdaq: INM).
Notable IPOs Today: Clearwater Analytics Holdings (NYSE: CWAN), Cue Health (Nasdaq: HLTH), CHW Acquisition Corporation Ordinary Share (Nasdaq: CWA), Blue Whale Acquisition Corp I Class A Ordinary Shares (Nasdaq: BWC).
Notable Equity Crowdfunding Campaigns Ending Today: Oxford Hounds (Wefunder), TransCrypts (Wefunder), Bocadillo Market (MainVest), Cybolt (Republic), AphriHelios Global (Fundanna), Streamport (Wefunder), Troubardour Coffee (MainVest), The Blue Marlin Bistro (MainVest), PlayChannel (Republic), Everyday Contacts (Wefunder), Casa W Distillery (MainVest).
Notable Economic Events Today: New Home Sales (10:00 a.m. ET).
Will Inflation Harm Big Tech?
As investors reckon with the impact of inflation, all eyes are on big tech growth stocks.
History: The pandemic was a boon for the big tech growth FAANG stocks of Facebook (Nasdaq: FB), Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Netflix (Nasdaq: NFLX), and Google (Nasdaq: GOOGL). But when inflation crept up a few months ago, these FAANG stocks began to pull back a bit.
The Problem: While inflation can be worrisome for many sectors, big tech has problems because some companies may not be able to pass along rising costs to consumers. This is especially true for growth stocks with higher valuations in fintech and SaaS (software as a service).
Escape: Some investors are leaving big tech and looking at sectors that are able to pass rising costs to users, such as consumer staples, industrials, and energy.
Final Thoughts: There are pros and cons to getting away from big tech during an inflationary period. Tech stocks that offer good valuations might be a good bet during this time.
How to Get Paid in Bitcoin on Twitter
Twitter (NYSE: TWTR) made social media history Thursday by rolling out a new feature that allows creators to get tips in Bitcoin on its platform.
Feature: Creators will be able to connect their crypto wallets to the app to get paid.
How: Bitcoin wallet Strike is partnering with Twitter for this new feature.
Details: Twitter, which had been testing out the feature for months, will not take a cut of the tips sent on the platform.
Numbers: The price of Bitcoin increased over 1% Thursday. Twitter shares grew 3.80%.
Final Thoughts: It pays for Bitcoin investors to be creators on Twitter. Will other social media platforms copy Twitter's Bitcoin plan?
Trends We Are Chirping About
Lowering the Target: Target trims holiday hiring goals (ABC News)
Big Box Retailer Wins Again: Costco Stock Is Higher Because Earnings Were Good Enough (Barron’s)
Rotten Apple: EU proposes mandatory USB-C on all devices, including iPhones (The Verge)
I’m Loving It: McDonald's Raises Dividend, Resumes Share Repurchases (Morningstar)
Next Meme Stock: Canoo rallies after talk on WallStreetBets re-energizes bulls (Seeking Alpha)
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